Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced the launch of the Value Enhancement Program, a number of
initiatives aimed at maximizing value for shareholders. Included
among the initiatives are returning significant amounts of capital
to shareholders, growing both production and Mineral Reserves
through the addition of the Detour Lake mine to the Company’s
portfolio and designating assets as non-core where they are
not generating adequate returns. The Company also today released
updated 2020 guidance, incorporating the impact of the Value
Enhancement Program and released Mineral Reserve and Mineral
Resource estimates for December 31, 2019.
Details Value Enhancement Program
Initiative Include:
- Repurchasing 20 million shares: 20 million
common shares to be repurchased over the next 12 – 24 months
through the Company’s normal course issuer bid (“NCIB”). Pursuant
to the terms of the current NCIB, the Company can repurchase up to
19,749,092 shares between now and the NCIB’s expiry on May 28,
2020. The Company plans on renewing the NCIB upon its expiry. The
Company also announces its intention to enter into an automatic
share purchase plan with its designated broker to allow for
purchases to be completed on a pre-determined schedule, subject to
the approval of the TSX. Assuming the closing prices on the
NYSE and TSX on Tuesday, February 18, 2020, the 20 million of share
repurchases would represent approximately $750 million
(C$1,000 million).
- Doubling quarterly dividend to $0.125 per
share: Quarterly dividend increased to $0.125 per share
effective Q1 2020 to be paid on April 13, 2020 to shareholders of
record as of March 31, 2020. On an annual basis, the $0.50 per
share of dividends will return approximately $145 million of
capital to shareholders per year.
- Adding approximately 600,000 ounces of annual
production and 14.8 million ounces of Mineral Reserves through
acquisition of Detour Lake Mine: Completion of the Detour
Gold Corporation acquisition on January 31, 2020 adds approximately
600,000 ounces of annual production and 14.8 million ounces of
Mineral Reserves. The Company plans to invest $25 – $30 million in
2020 on exploration drilling at Detour Lake, with the objective
being to significantly grow Mineral Reserves in support of
substantially increasing production and driving down unit costs.
The addition of Detour Lake is expected to add significantly to the
Company’s free cash flow in 2020 and going forward.
- Considering strategic options for maximizing value at
Holt Complex and in Northern Territory: Following
completion of the Detour Gold acquisition, the Company has
designated the Holt Complex in Northern Ontario and the Company’s
assets in the Northern Territory in Australia as non-core with
plans to consider all options to maximize value from these
assets. The Holt Complex last year produced 113,952 ounces at
operating cash costs of $938 per ounce and all-in sustaining costs
(“AISC”) of $1,386 per ounce. The Company is currently
conducting an advanced exploration program and doing rehabilitation
work at the Northern Territory assets. The advanced exploration
program includes test mining at the Cosmo Mine, test processing at
the Union Reefs Mill and extensive regional diamond drilling. The
Company plans to continue operating the Holt Complex and move
forward with advanced exploration work and rehabilitation efforts
in the Northern Territory while it considers strategic options for
the assets.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “Following completion of
the Detour Gold acquisition, Kirkland Lake Gold is a company with
three high-quality, free cash flow generating assets, Fosterville,
Macassa and Detour Lake. The three operations together will produce
around 1.4 million ounces of gold this year, and all three have
substantial growth potential. We are also an industry leader
in profitability and have the strongest balance sheet among our
peers. We plan to put our financial strength to use to maximize
value for our shareholders. Between our cash on hand and the
significant amounts of free cash flow we generate, we are in a
position to commit a substantial amount of capital to repurchase
our shares, and to double our current quarterly dividend. Very
importantly, we can undertake these initiatives while still
maintaining a strong balance sheet and ability to internally fund
our growth projects.
“We are also taking steps to maximize the value
of our business portfolio. The addition of Detour Lake is an
important development for our company and our shareholders, that
could be transformational from the standpoint of value creation.
Results at Detour this year should be similar to the mine’s
performance in 2019. Looking ahead, through the work we are
planning, we see the potential for Detour Lake to reach over
700,000 ounces of annual production at all-in sustaining costs
(“AISC”) of approximately $850 per ounce as early as
2021. With the quality and potential of our three key
operations, and circumstances at other assets, we have decided to
designate our Holt Complex and assets in the Northern Territory as
non-core and will consider all options for maximizing value. We
will continue our current work plans at each of these assets while
we go through the strategic review process. With the initiatives
being announced today, Kirkland Lake Gold is a company with a
portfolio of highly competitive, very profitable assets and
substantial financial strength. We are also a company that is very
committed to rewarding shareholders for their continued
support.”
REVISIONS TO FULL-YEAR 2020
GUIDANCE
On February 19, 2020, the Company announced
revisions to the full-year 2020 consolidated guidance initially
issued on December 18, 2020. The revisions to guidance reflect the
addition of Detour Lake Mine to the Company’s business portfolio
effective January 31, 2020 (guidance is based on pro forma results
for the full year). Guidance for 2020 related to the Holt Complex
remains in place while the Company reviews strategic options for
these assets. Also, there is no impact on guidance from the
Company’s advanced exploration work in the Northern Territory, as
the Company’s Northern Territory assets were excluded from the
initial 2020 guidance.
Initial 2020 Guidance (as at December
18, 2019)
($ millions unless otherwise stated) |
Macassa |
Holt Complex Complex(2) |
Fosterville |
Consolidated |
Gold
production (kozs)(1) |
240 – 250 |
120 – 140 |
590 – 610 |
950 – 1,000 |
Operating cash costs/ounce sold ($/oz)(2) |
$470 - $490 |
$790 - $810 |
$130 - $150 |
$300 - $330 |
AISC/ounce sold ($/oz)(2) |
|
|
|
$570 - $630 |
Operating cash costs ($M)(2) |
|
|
|
$310 - $320 |
Royalty
costs ($M) |
|
|
|
$58 - $62 |
Sustaining capital ($M)(2) |
|
|
|
$165 - $175 |
Growth
capital ($M)(2) |
|
|
|
$70 - $80 |
Exploration ($M)(3) |
|
|
|
$120 - $140 |
Corporate G&A ($M)(4) |
|
|
|
$40 - $45 |
(1) Production and unit-cost guidance for 2020 as issued in a
press release dated December 18, 2019. The guidance does not
include results for the Northern Territory.(2) See “Non-IFRS
Measures” set out starting on page 38 of the MD&A for the three
and twelve months ended December 31, 2019 for further details. The
most comparable IFRS Measure for operating cash costs, operating
cash costs per ounce sold and AISC per ounce sold is production
costs, as presented in the Consolidated Statements of Operations
and Comprehensive Income, and total additions and construction in
progress for sustaining and project capital. Operating cash costs,
operating cash cost per ounce sold and AISC per ounce sold reflect
an average US$ to C$ exchange rate of 1.30 and a US$ to A$ exchange
rate of 1.43.(3) Exploration expenditures include capital
expenditures related to infill drilling for Mineral Resource
conversion, capital expenditures for extension drilling outside of
existing Mineral Resources and expensed exploration.(4) Includes
general and administrative costs. Excludes non-cash share-based
payment expense.
Revised Full-Year 2020 Guidance (as at
February 19, 2020)
($ millions unless otherwise stated) |
Macassa |
Detour Lake(1) |
Holt Complex |
Fosterville |
Consolidated |
Gold production (kozs)(1) |
240 - 250 |
520 - 540 |
120 - 140 |
590 – 610 |
1,470 - 1,540 |
Operating cash costs/ounce sold ($/oz)(2) |
$470 - $490 |
$720 - $740 |
$790 - $810 |
$130 - $150 |
$450 - $470 |
AISC/ounce sold ($/oz)(2) |
|
|
|
|
$820 - $840 |
Operating cash costs ($M)(2) |
|
|
|
|
$700 - $720 |
Royalty costs ($M) |
|
|
|
|
$85 - $90 |
Sustaining capital ($M)(2) |
|
|
|
|
$420 - $430 |
Growth capital ($M)(2) |
|
|
|
|
$70 - $80 |
Exploration ($M)(3) |
|
|
|
|
$150 - $170 |
Corporate G&A ($M)(4) |
|
|
|
|
$50 - $55 |
(1) Production, unit-cost and expenditure guidance for 2020 as
issued in a press release dated December 18, 2019 is adjusted for
the addition of Detour Lake effective February 1, 2020. The
guidance does not include results for the Northern Territory.(2)
See “Non-IFRS Measures” set out starting on page 38 of the MD&A
for the three and twelve months ended December 31, 2019 for
further details. The most comparable IFRS Measure for operating
cash costs, operating cash costs per ounce sold and AISC per ounce
sold is production costs, as presented in the Consolidated
Statements of Operations and Comprehensive Income, and total
additions and construction in progress for sustaining and project
capital. Operating cash costs, operating cash cost per ounce sold
and AISC per ounce sold reflect an average US$ to C$ exchange rate
of 1.30 and a US$ to A$ exchange rate of 1.43.(3) Exploration
expenditures include capital expenditures related to infill
drilling for Mineral Resource conversion, capital expenditures for
extension drilling outside of existing Mineral Resources and
expensed exploration.(4) Includes general and administrative costs
and severance payments. Excludes share-based payment expense.
Consolidated production guidance for 2020 is
increased from 950,000 – 1,000,000 ounces to 1,470,000 – 1,540,000
ounces. The change reflects the addition of 520,000 – 540,000
ounces from Detour Lake, representing expected production over the
final 11 months of the year. Operating cash cost and AISC per ounce
sold guidance is increased to $450 – $470 from $300 – $330 and $820
– $840 from $580 – $630, respectively. The increases to both
operating cash cost and AISC per ounce results from the addition of
Detour Lake. Among other revisions, sustaining capital expenditure
guidance increases to $420 – $430 million from $165 – $175 million
reflecting the addition of Detour Lake, where all capital
expenditures are recorded as sustaining capital. The increase in
exploration expenditure guidance reflects the Company’s intention
to invest aggressively in exploration drilling Detour Lake over the
next year. Corporate G&A guidance increases to $50 – $55
million from $40 – $45 million previously due to added costs
related to the addition of Detour Lake mine.
CONSOLIDATED MINERAL RESERVES AND MINERAL RESOURCES AS
AT DECEMBER 31, 2019
On February 19, 2020, the Company released
Mineral Reserve and Mineral Resource estimates as at December 31,
2019, with the comparison period being December 31, 2018. Included
in the Company’s Mineral Reserve and Mineral Resource estimates are
Mineral Reserves and Mineral Resources related to the acquired
assets of Detour Gold Corporation as at December 31, 2019.
Highlights of the December 31, 2019
Mineral Reserves and Mineral Resource estimates
include:
- Consolidated Mineral Reserves increase 257% to
20,470,000 ounces with addition of 14,846,000 ounces of open-pit
Mineral Reserves at Detour Lake Mine.
- Mineral Reserves at Macassa increase 9% to
2,453,000 ounces, including Mineral Reserves at depth of 2,360,000
ounces at an average grade of 22.1 g/t, and 93,000 ounces at an
average grade of 10.7 g/t in near-surface zones along the
Amalgamated Break. Development from surface is commencing towards
the near-surface zones with the aim of establishing a second mining
front at Macassa.
- Mineral Reserves at Fosterville of 2,320,000
ounces include 2,100,000 ounces @ 21.8 g/t in the Lower
Phoenix and Harrier systems (including 1,560,000 ounces @ 38.6 g/t
at Swan Zone) and 218,000 ounces @ 5.5 g/t above 650 metres below
surface at Robbin’s Hill. Twin development ramps are being driven
to Robbins Hill, which is expected to become a second mining
operation at Fosterville. Exploration expenditures at
Fosterville are estimated at $70 – $80 million in 2020, with the
focus being on drilling and development in areas where quartz
veining with visible gold has been intersected.
- Mineral Reserves at Holt Complex increase 9%
to 702,000 ounces @ 4.0 grade, Northern Territory Mineral
Reserves grow 20% to 128,000 ounces @ 4.0 g/t.
Mineral Reserves and Mineral Resources as at
December 31, 2019. For Kirkland Lake Gold assets as at December 31,
2019, Mineral Reserves and Mineral Resources were estimated using a
long-term gold price of US$1,300/oz (C$1,700/oz; A$1,765/oz).
For Detour Lake Mineral Reserves and Mineral Resources as at
December 31, 2019, the long-term gold price is assumed to be
US$1,000/oz with an assumed exchange rate of US$1.0:C$1.10. All
Mineral Resource estimates are provided exclusive of Mineral
Reserves. Comparisons to previous Mineral Reserves and Mineral
Resources in this press release are to estimates as at December 31,
2018. For more historical comparisons, Mineral Resource estimates
for the Australian operations prior to the mid-year 2017 Mineral
Reserve and Mineral Resource estimates for Fosterville, released in
June 2017, were calculated inclusive of Mineral Reserves and,
therefore, are not directly comparable to the December 31, 2019 and
December 31, 2018 estimates. Detailed footnotes for the
December 31, 2019 Mineral Reserve and Mineral Resource estimates
are provided later in this press release.
CONSOLIDATED MINERAL RESERVE ESTIMATE (EFFECTIVE
DECEMBER 31, 2019)
|
December 31, 2019 |
|
December 31, 2018 |
Proven and Probable |
Tonnes (000's) |
Grade (g/t) |
Gold Ozs (000’s) |
Depleted Oz |
Tonnes (000's) |
Grade |
Gold Ozs (000’s) |
2019 (000’s) |
(g/t) |
Macassa |
3,320 |
22.1 |
2,360 |
246 |
3,190 |
21.9 |
2,250 |
Macassa Near Surface |
273 |
10.7 |
93 |
- |
- |
- |
- |
Holt Complex(1) |
5,432 |
4.0 |
702 |
120 |
4,588 |
4.4 |
644 |
Hislop(1) |
176 |
5.8 |
33 |
- |
176 |
5.8 |
33 |
Total CDN Underground |
9,200 |
10.8 |
3,190 |
367 |
7,950 |
11.4 |
2,920 |
Detour Lake Pit |
397,680 |
0.99 |
12,640 |
|
|
|
|
West Detour Pit |
54,920 |
0.94 |
1,660 |
|
|
|
|
North Pit |
5,950 |
0.98 |
187 |
|
|
|
|
Detour Low Grade Fines |
18,900 |
0.59 |
360 |
|
|
|
|
Total CDN Open Pit |
477,450 |
0.97 |
14,846 |
0 |
0 |
0.00 |
0 |
Total CDN Operations |
486,650 |
1.15 |
18,030 |
367 |
7,950 |
11.4 |
2,920 |
Fosterville |
3,000 |
21.8 |
2,100 |
627 |
2,720 |
31.0 |
2,720 |
Robbins Hill |
1,240 |
5.5 |
218 |
- |
- |
- |
- |
Northern Territory(1) |
988 |
4.0 |
128 |
10 |
666 |
5.0 |
107 |
Total AUS Operations |
5,220 |
14.6 |
2,450 |
637 |
3,390 |
25.9 |
2,820 |
Total |
491,900 |
1.29 |
20,470 |
1,004 |
11,340 |
15.7 |
5,740 |
(1) The Hislop mine is a former producer acquired as part of the
St Andrew Goldfields acquisition in January 2016. Hislop has not
been operated since the acquisition. The Holloway mine was placed
on care and maintenance effective December 31, 2016 and resumed
operation in the first quarter 2019. The Cosmo mine and Union Reefs
mill were placed on care and maintenance effective June 30,
2017.
CONSOLIDATED MEASURED & INDICATED MINERAL RESOURCES
(EFFECTIVE DECEMBER 31, 2019)
Measured & Indicated |
December 31, 2019 |
December 31, 2018 |
|
Tonnes (000's) |
Grade (g/t) |
Gold Ozs (000’s) |
Tonnes (000's) |
Grade(g/t) |
Gold Ozs (000’s) |
Canada Ops – Underground |
|
|
|
|
|
|
Macassa |
1,616 |
13.8 |
717 |
1,621 |
17.0 |
886 |
Macassa Near Surface |
47 |
7.8 |
12 |
167 |
17.9 |
96 |
Holt Complex |
7,752 |
4.2 |
1,047 |
9,664 |
4.1 |
1,279 |
Hislop |
1,147 |
3.6 |
132 |
1,147 |
3.6 |
132 |
Detour Zone 58N |
2,900 |
5.8 |
534 |
- |
- |
- |
Ludgate |
- |
- |
- |
522 |
4.1 |
68 |
Canamax |
240 |
5.1 |
39 |
240 |
5.1 |
39 |
Total Canada Underground |
13,702 |
5.7 |
2,482 |
13,360 |
5.8 |
2,500 |
Canada Ops – Open Pit |
|
|
|
|
|
|
Detour Lake |
81,400 |
1.15 |
3,003 |
|
|
|
West Detour |
31,000 |
0.88 |
878 |
|
|
|
Aquarius |
22,300 |
1.29 |
926 |
22,300 |
1.29 |
926 |
Total Canada Open Pit |
134,700 |
1.1 |
4,807 |
22,300 |
1.3 |
926 |
Total CDN Operations |
148,402 |
1.5 |
7,290 |
35,660 |
3.0 |
3,426 |
|
December 31, 2019 |
December 31, 2018 |
Fosterville |
12,300 |
5.3 |
2,080 |
11,600 |
5.0 |
1,850 |
Robbin’s Hill |
3,460 |
3.5 |
386 |
3,210 |
2.5 |
256 |
Northern Territory |
17,200 |
2.5 |
1,410 |
22,200 |
2.5 |
1,750 |
Total AUS Operations |
32,900 |
3.7 |
3,870 |
36,900 |
3.3 |
3,860 |
CONSOLIDATED INFERRED MINERAL RESOURCES (EFFECTIVE
DECEMBER 31, 2019)
Inferred |
December 31, 2019 |
December 31, 2018 |
|
Tonnes (000's) |
Grade (g/t) |
Gold Ozs (000’s) |
Tonnes (000's) |
Grade(g/t) |
Gold Ozs (000’s) |
Canada Ops – Underground |
|
|
|
|
|
|
Macassa |
1,039 |
16.7 |
557 |
580 |
16.8 |
313 |
Macassa Near Surface |
146 |
11.5 |
54 |
30 |
15.5 |
15 |
Holt Complex |
9,097 |
4.4 |
1,294 |
15,820 |
4.6 |
2,329 |
Hislop |
797 |
3.7 |
95 |
797 |
3.7 |
95 |
Detour Zone 58N |
1,000 |
4.4 |
136 |
- |
- |
- |
Ludgate |
- |
- |
- |
1,396 |
3.6 |
162 |
Canamax |
170 |
4.3 |
23 |
170 |
4.3 |
23 |
Total Canada Underground |
12,248 |
5.5 |
2,160 |
18,792 |
4.9 |
2,937 |
Canada Ops – Open Pit |
|
|
|
|
|
|
Detour Lake |
33,600 |
0.79 |
855 |
|
|
|
West Detour |
9,300 |
0.95 |
282 |
|
|
|
Total Canada Open Pit |
42,900 |
0.82 |
1,137 |
|
|
|
Total CDN Operations |
55,148 |
1.9 |
3,297 |
18,792 |
4.9 |
2,937 |
|
December 31, 2019 |
December 31, 2018 |
Fosterville |
8,450 |
6.4 |
1,740 |
6,930 |
6.0 |
1,330 |
Robbin’s Hill |
2,670 |
4.5 |
383 |
3,390 |
4.6 |
504 |
Northern Territory |
15,200 |
2.6 |
1,270 |
18,100 |
2.6 |
1,490 |
Total AUS Operations |
26,400 |
4.0 |
3,390 |
28,400 |
3.6 |
3,320 |
CANADIAN OPERATIONS MINERAL RESERVES AND MINERAL
RESOURCES AS AT DECEMBER 31, 2019
Macassa
Mineral Reserves at Macassa in 2019 increased 9%
after depletion of approximately 246,000 ounces, with total Mineral
Reserves at December 31, 2019 of 2,450,000 ounces at an average
grade of 21.2 g/t. Included in total Mineral Reserves at Macassa
are Mineral Reserves at depth of 2,360,000 ounces at an average
grade of 22.1 g/t, and 93,000 ounces at an average grade of 10.7
g/t in near-surface zones along the Amalgamated Break. The December
31, 2019 Mineral Reserves compared to total Mineral Reserves of
2,250,000 ounces at an average grade of 21.9 g/t at December 31,
2018.
Measured and Indicated (“M&I”) Mineral
Resources at December 31, 2019 totaled 730,000 ounces at an average
grade of 13.7 g/t, while Inferred Mineral Resources totaled 611,000
ounces at an average grade of 16.0 g/t. The reduction in M&I
Mineral Resources compared to the December 31, 2018 estimate
reflected the focus of drilling during 2019 on Mineral Resource
conversion into Mineral Reserves.
In 2020, total capital and expensed exploration
expenditures at Macassa are targeted at $40 – $50 million.
Significant exploration development is planned at Macassa in 2020,
including work on a new exploration decline to access and explore
previously identified high-grade zones near surface along the
Amalgamated Break. In addition, development to extend exploration
drifts is planned on the 5150, 5705 and 5807 levels mainly in
support of drilling to infill and extend the SMC and to evaluate
targets at depth along the Amalgamated Break. A total of 270,000
metres of underground and surface drilling is planned at Macassa in
2020, with the primary targets being the SMC, Amalgamated Break and
select targets along the Main and ’04 breaks.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Macassa |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
383 |
20.3 |
250 |
288 |
21.7 |
201 |
-6 |
24 |
Probable |
2,930 |
22.4 |
2,110 |
2,900 |
22.0 |
2,050 |
2 |
3 |
Proven + Probable |
3,320 |
22.1 |
2,360 |
3,190 |
21.9 |
2,250 |
1 |
5 |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
311 |
16.0 |
160 |
453 |
18.4 |
268 |
-13 |
-40 |
Indicated |
1,305 |
13.3 |
558 |
1,168 |
16.4 |
618 |
-21 |
-10 |
Measured + Indicated |
1,616 |
13.8 |
717 |
1,621 |
17.0 |
886 |
-20 |
-19 |
Inferred |
1,039 |
16.7 |
557 |
580 |
16.8 |
313 |
-1 |
78 |
|
December 31, 2019 |
December 31, 2018 |
% Change |
Macassa Near Surface |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
- |
- |
- |
- |
- |
- |
- |
- |
Probable |
273 |
10.7 |
93 |
- |
- |
- |
- |
- |
Proven + Probable |
273 |
10.7 |
93 |
- |
- |
- |
- |
- |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
- |
- |
- |
- |
- |
- |
- |
- |
Indicated |
47 |
7.8 |
12 |
167 |
17.9 |
96 |
-57 |
-88 |
Measured + Indicated |
47 |
7.8 |
12 |
167 |
17.9 |
96 |
-57 |
-88 |
Inferred |
146 |
11.5 |
54 |
30 |
15.5 |
15 |
-26 |
257 |
Holt Complex
Mineral Reserves at the Holt Complex are
distributed at three mines, the Holt Mine, Taylor mines and
Holloway Mine. As at December 31, 2019, total Mineral Reserves at
the three mines totaled 702,000 based on 5,432,000 tonnes at an
average grade of 4.0 g/t. The 702,000 ounces of Mineral Reserves
was 9% higher than 644,000 ounces from 4,588,000 tonnes at an
average grade of 4.4 g/t as at December 31, 2018. M&I Mineral
Resources at the Holt, Taylor and Holloway totaled 1,047,000 ounces
at an average grade of 4.4 g/t versus 1,279,000 ounces at an
average grade of 4.2 g/t as at December 31, 2018.
On February 19, 2020, the Company announced that
it was designating the Holt Complex as non-core and will consider
all options for maximizing value. Operations at the Holt Complex
are continuing during the period of strategic review.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Holt Complex |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
2,507 |
3.7 |
296 |
1,954 |
4.1 |
256 |
-10 |
16 |
Probable |
2,925 |
4.3 |
406 |
2,644 |
4.6 |
388 |
-5 |
5 |
Proven + Probable |
5,432 |
4.0 |
702 |
4,588 |
4.4 |
644 |
-8 |
9 |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
4,319 |
4.1 |
563 |
4,322 |
4.0 |
562 |
0 |
0 |
Indicated |
3,433 |
4.4 |
484 |
5,342 |
4.2 |
717 |
5 |
-32 |
Measured + Indicated |
7,752 |
4.4 |
1,047 |
9,664 |
4.2 |
1279 |
5 |
-18 |
Inferred |
9,097 |
4.4 |
1,294 |
15,820 |
4.6 |
2,329 |
-5 |
-43 |
Detour
On January 31, 2020, the Company completed the
acquisition of Detour Gold Corporation. Through the acquisition,
Detour Gold became a subsidiary of the Company and the Company
obtained 100% ownership of the Detour Lake open-pit mine. As a
result of the acquisition, the Company gained 14,846,000 ounces of
open-pit Mineral Reserves at an average grade of 0.97 g/t. The
Company also gained 3,881,000 ounces of M&I open-pit Mineral
Resources at an average grade of 1.08 g/t and 1,137,000 ounces of
Inferred open-pit Mineral Resources at 0.82 g/t. Through 58 North
Zone, located 8.0 km from the current Detour Lake open pit, a total
of 534,000 ounces of underground M&I Mineral Resources have
been added at an average grade of 5.8 g/t, as well as 136,000
ounces of Inferred Mineral Resources at an average grade of 4.35
g/t. There was no change to the Mineral Resource estimates from
December 31, 2018 to December 31, 2019.
In 2019, there was no infill drilling targeting
the conversion of mineral resources to mineral reserves within the
Detour Lake pit and West Detour project. Based on the expected
throughput rates projected in the life of mine plan, the remaining
mineral reserve life of the Detour Lake operation is approximately
21 years as of December 31, 2019. In 2020, the Company is planning
an extensive program of exploration drilling within and around the
current Detour Lake open pit, with drilling also planned on a
number of regional targets. Exploration expenditures in 2020 from
February 1, 2020 are estimated at $25.0 – $30.0 million.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Detour |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Open Pit |
|
|
|
|
|
|
|
|
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
81,050 |
1.24 |
3,240 |
|
|
|
|
|
Probable |
396,400 |
0.91 |
11,606 |
|
|
|
|
|
Proven + Probable |
477,450 |
0.97 |
14,846 |
|
|
|
|
|
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
16,700 |
1.34 |
722 |
|
|
|
|
|
Indicated |
95,600 |
1.03 |
3,160 |
|
|
|
|
|
Measured + Indicated |
112,300 |
1.08 |
3,881 |
|
|
|
|
|
Inferred |
42,900 |
0.82 |
1,137 |
|
|
|
|
|
|
December 31, 2019 |
December 31, 2018 |
% Change |
Detour |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Underground |
|
|
|
|
|
|
|
|
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
- |
- |
- |
|
|
|
|
|
Probable |
- |
- |
- |
|
|
|
|
|
Proven + Probable |
- |
- |
- |
|
|
|
|
|
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
- |
- |
- |
|
|
|
|
|
Indicated |
2,900 |
5.80 |
534 |
|
|
|
|
|
Measured + Indicated |
2,900 |
5.80 |
534 |
|
|
|
|
|
Inferred |
1,000 |
4.35 |
136 |
|
|
|
|
|
AUSTRALIAN OPERATIONS MINERAL RESERVES AND MINERAL
RESOURCES AS AT DECEMBER 31, 2019
Fosterville
Mineral Reserves at Fosterville as at December
31, 2019 totaled 2,320,000 ounces, which included 2,100,000 ounces
at and average grade of 21.8 g/t in the Lower Phoenix and Harrier
systems and 218,000 ounces at Robbin’s Hill at an average grade of
5.5 g/t. The Mineral Reserves at Robbin’s Hill are located above
650 metres below surface, well above the depth where the Swan Zone
was discovered in the Lower Phoenix system. Included within the
2,100,000 ounces is 1,560,000 ounces at an average grade of 38.6
g/t in the Swan Zone.
Mineral Reserves as at December 31, 2019
compared to total Mineral Reserves as at December 31, 2018 of
2,700,000 ounces at an average grade of 31.0 g/t, which included
2,340,000 ounces at 49.6 g/t in the Swan Zone and no Mineral
Reserves at Robbin’s Hill. The change from the previous year
reflected depletion during 2019 of approximately 627,000 ounces at
a grade of 39.6 g/t, the results of infill drilling within the
existing Swan Mineral Reserve that resulted in lower grade
estimates in some areas, and a focus during 2019 on extending
mineralized structures and advancing Robbin’s Hill as a possible
second mining operation.
Solid growth was achieved in Mineral Resources,
including growth in M&I Mineral Resources to 2,080,000 ounces
at an average grade of 5.3 g/t at Lower Phoenix and Harrier versus
1,850 ounces at an average grade of 5.0 g/t as at December 31,
2018. Inferred Mineral Resources at Lower Phoenix and Harrier
increased 31%, to 1,740,000 ounces at an average grade of 6.4 g/t
versus 1,330,000 ounces at an average grade of 6.0 g/t the previous
year. The significant Mineral Resources at Fosterville demonstrate
that the traditional sulphide mineralization, which hosts the
quartz with visible gold mineralization that is found in
concentration in the Swan Zone, is present over large areas, with
quartz and visible being intersected at multiple
targets.
Drilling during 2019 demonstrated that the
Phoenix mineralized structure extends and is continuous for at
least 950 metres down-plunge from the bottom of the Swan Zone,
which represents an extremely large exploration target for future
drilling. In addition, the Cygnet zone, footwall to the Swan Zone,
was identified over a 650-metre strike length and 300 depth.
Drilling at Robbin’s Hill intersected visible gold mineralization
550 metres below the December 31, 2018 Mineral Resources, while
drilling to depth at Harrier remained at an early stage, with
visible gold having been intersected higher in the Harrier
system.
Exploration expenditures at Fosterville are
targeted at $70 – $80 million, including $15 – $20 million related
to the underground development for a twin 4.8 km underground
exploration drive to connect Robbin’s Hill to existing mine
infrastructure at Fosterville. The decline is a three-year project
that will support underground exploration of Robbin’s Hill and
other targets and provide valuable infrastructure for future mine
operations. In addition, a total of 230,000 metres of underground
and surface drilling are planned at Fosterville in 2020, with the
primary targets continuing to be the areas where quartz veining
with visible gold has been intersected, the Lower Phoenix system,
Cygnet, Harrier and Robbin’s Hill. The Company will also continue
exploration work at a number of regional targets.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Fosterville |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
695 |
31.9 |
714 |
178 |
16.7 |
96 |
91 |
643 |
Probable |
2,300 |
18.8 |
1,390 |
2,550 |
32.0 |
2,620 |
-41 |
-47 |
Proven + Probable |
3,000 |
21.8 |
2,100 |
2,720 |
31.0 |
2,720 |
-30 |
-23 |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
2,000 |
3.7 |
240 |
1,900 |
2.9 |
177 |
28 |
36 |
Indicated |
10,300 |
5.6 |
1,840 |
9,660 |
5.4 |
1,670 |
4 |
10 |
Measured + Indicated |
12,300 |
5.3 |
2,080 |
11,600 |
5.0 |
1,850 |
6 |
12 |
Inferred |
8,450 |
6.4 |
1,740 |
6,930 |
6.0 |
1,330 |
7 |
31 |
|
December 31, 2019 |
December 31, 2018 |
% Change |
Swan(1) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
493 |
40.5 |
641 |
62 |
27.6 |
55 |
47 |
1,065 |
Probable |
764 |
37.4 |
919 |
1,410 |
50.6 |
2,290 |
-26 |
-60 |
Proven + Probable |
1,260 |
38.6 |
1,560 |
1,470 |
49.6 |
2,340 |
-22 |
-33 |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
30 |
46.4 |
45 |
2 |
59.6 |
4 |
-22 |
1,051 |
Indicated |
59 |
18.2 |
34 |
32 |
15.7 |
16 |
16 |
110 |
Measured + Indicated |
89 |
27.7 |
79 |
34 |
18.3 |
20 |
51 |
293 |
Inferred |
93 |
19.3 |
57 |
249 |
13.4 |
107 |
44 |
-47 |
The Swan Zone Mineral Reserve and Mineral Resource estimates are
components of the estimates for the Fosterville mine.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Robbin’s Hill(1) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
- |
- |
- |
- |
- |
- |
|
|
Probable |
1,240 |
5.5 |
218 |
- |
- |
- |
|
|
Proven + Probable |
1,240 |
5.5 |
218 |
- |
- |
- |
|
|
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
- |
- |
- |
- |
- |
- |
- |
- |
Indicated |
3,460 |
3.5 |
386 |
3,210 |
2.5 |
256 |
40 |
51 |
Measured + Indicated |
3,460 |
3.5 |
386 |
3,210 |
2.5 |
256 |
40 |
51 |
Inferred |
2,670 |
4.5 |
383 |
3,390 |
4.6 |
504 |
-2 |
-24 |
(1) The Robbin’s Hill Mineral Reserve and
Mineral Resource estimates are reported separately from Fosterville
as it is anticipated that Robbin’s Hill will be a new and separate
mining operation feeding the Fosterville Mill.
Northern Territory (Cosmo Mine/Union Reefs
Mill)
On June 30, 2017, Kirkland Lake Gold suspended
operations at the Cosmo mine and Union Reefs mill with the
operations being placed on care and maintenance. Following the move
to care and maintenance, an active exploration program, including
drilling and development, was undertaken at the Cosmo mine, where a
new deposit, the Lantern Deposit, was identified in 2017. In early
2019, an advanced exploration program was launched, which included
drilling at multiple targets around the Cosmo Mine and at Union
Reefs and Pine Creek, and development at the Lantern Deposit to
support test mining and, as of October 2019, test processing at the
Union Reefs Mill.
Mineral Reserves in the Northern Territory at
December 31, 2019 totaled 128,000 ounces at 4.0 g/t, which compared
to 107,000 ounces at 5.0 g/t at December 31, 2018. On
February 19, 2020, the Company announced that it was designating
the Northern Territory assets as non-core, with plans to consider
all strategic options for maximizing value. During the period of
strategic review, the Company will continue to perform advanced
exploration work, including test mining at the Cosmo Mine and test
processing at Union Reefs, in addition to ongoing exploration
drilling.
|
December 31, 2019 |
December 31, 2018 |
% Change |
Northern Territory |
Tonnes(000’s) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Underground |
|
|
|
|
|
|
|
|
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
- |
- |
- |
33 |
3.1 |
3 |
0 |
0 |
Probable |
988 |
4.0 |
128 |
633 |
5.1 |
103 |
-22 |
24 |
Proven + Probable |
988 |
4.0 |
128 |
666 |
5.0 |
107 |
-20 |
20 |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
102 |
4.7 |
15 |
702 |
3.4 |
77 |
38 |
-80 |
Indicated |
6,790 |
3.5 |
768 |
8,910 |
3.2 |
914 |
9 |
-16 |
Measured + Indicated |
6,890 |
3.5 |
784 |
9,610 |
3.2 |
990 |
9 |
-21 |
Inferred |
5,490 |
3.7 |
653 |
5,980 |
3.8 |
725 |
-3 |
-10 |
|
December 31, 2019 |
December 31, 2018 |
% Change |
Northern Territory |
Tonnes(000’s) |
Grade (g/t) |
Gold Ounces (000’s) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000’s) |
Gold Grade |
Gold Ounces |
Open Pit |
|
|
|
|
|
|
|
|
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
- |
- |
- |
- |
- |
- |
- |
- |
Probable |
- |
- |
- |
- |
- |
- |
- |
- |
Proven + Probable |
- |
- |
- |
- |
- |
- |
- |
- |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
1,070 |
5.6 |
192 |
1,070 |
5.6 |
192 |
- |
- |
Indicated |
9,230 |
1.5 |
431 |
11,500 |
1.5 |
570 |
- |
-24 |
Measured + Indicated |
10,300 |
1.9 |
623 |
12,500 |
1.9 |
762 |
- |
-18 |
Inferred |
9,750 |
2.0 |
613 |
12,100 |
2.0 |
767 |
- |
-20 |
Technical Reports
Fosterville property entitled, “Updated NI
43-101 Technical Report Fosterville Gold mine in the State of
Victoria, Australia” (the “Fosterville Report”) and the amended and
restated NI 43-101 Technical report for Macassa entitled “Macassa
Property, Ontario, Canada, Updated NI 43-101 Technical Report” (the
“Macassa Report”) effective December 31, 2018 and dated April 1,
2018 and July 19, 2018, respectively.
The Fosterville Report was prepared by Troy
Fuller, MAIG, and Ion Hann, FAusIMM, both of whom are “qualified
persons” as such term is defined in NI 43-101 and employees of the
Company. The Fosterville Report supports the scientific and
technical disclosure in the updated Mineral Resource and Mineral
Reserve estimates contained in the Company’s News Release dated
February 21, 2019. The Macassa Report was prepared by Mariana
Pinheiro Harvey, P. Eng., Robert Glover, P. Geo, William Tai, P.
Eng. and Ben Harwood, P. Geo, all of whom are “qualified persons”
as such term is defined in NI 43-101 and employees of the Company.
The Macassa Report supports the scientific and technical disclosure
in the updated Mineral Resource and Mineral Reserve estimates
contained in the Company’s News Release dated February 21, 2019.
Both the Fosterville Report and the Macassa Report are available
under the Company’s profile on SEDAR at www.sedar.com. Further
information regarding the Company’s Mineral Reserves and Mineral
Resources effective December 31, 2018 are set out in the Company’s
press release dated February 21, 2019 as filed on SEDAR.
Qualified Persons
Natasha Vaz, P.Eng., Vice President, Technical
Services is a "qualified person" as defined in NI 43-101 and has
reviewed and approved disclosure of the Mineral Reserves technical
information and data for the Canadian Assets (excluding Detour)
included in this news release.
Eric Kallio, P. Geo., Senior Vice President,
Exploration is a “qualified person” as defined in NI 43-101 and has
reviewed and approved disclosure of the Mineral Resource technical
information and data for the Canadian Assets (excluding Detour)
included in this news release.
Ian Holland, FAusIMM, Vice President, Australian
Operations is a "qualified person" as defined in NI 43-101 and has
reviewed and approved the Mineral Reserves technical information
and data for the Australian Assets included in this news
release.
Simon Hitchman, FAusIMM (CP), MAIG, Principal
Geologist, is a "qualified person" as such term is defined in NI
43-101 and has reviewed and approved the Mineral Resources
technical information and data for the Australian Assets included
in this news release.
Andre Leite, PEng , AUSIMM CP (MIN), MEng.,
Technical Services Manager is a "qualified person" as defined in NI
43-101 and has reviewed and approved disclosure of the Mineral
Reserves and Mineral Resources technical information and data for
the Detour assets included in this news release.
Detailed footnotes related to Mineral
Reserve Estimates (dated December 31, 2019) - with the exception of
Detour:
- CIM definitions (2019) were followed in the estimation of
Mineral
Reserves.
- Mineral Reserves were estimated using a long-term gold price of
US$1,300/oz (C$1,700/oz; A$1,765/oz).
- Cut-off grades for Canadian Assets were calculated for each
stope and included the costs of: mining, milling, General and
Administration, royalties and capital expenditures and other
modifying factors (e.g. dilution, mining extraction, mill
recovery).
- Cut-off grades for Australian Assets were calculated for each
mining block and included the costs of: mining, milling, General
and Administration, royalties and capital expenditures and other
modifying factors (e.g. dilution, mining extraction, mill
recovery).
- Dilution estimates vary by mining methods and ranges from 5% to
50%.
- Extraction estimates vary by mining methods and range from 50%
to
100%.
- Mineral Reserves estimates for Canadian Operations were
prepared under the supervision of N.Vaz, P.
Eng.
- Mineral Reserves estimates for Australian Operations were
prepared under the supervision of I.Holland,
FAusIMM
- Mineral Reserves are stated at a mill feed reference
point.
- Totals may not add up due to rounding.
Detailed footnotes related to Detour’s
Mineral Reserve and Resource Estimates (dated December 31,
2019):
- The Company’s mineral reserve and mineral resource statement is
classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) “CIM Definition Standards - For
Mineral Resources and Mineral Reserves" adopted by the CIM Council
(as amended, the “CIM Definition Standards”) in accordance with the
requirements of National Instrument 43-101 “Standards of Disclosure
for Mineral Projects" (“NI 43-101”). Mineral reserve and mineral
resource estimates reflect the Company's reasonable expectation
that all necessary permits and approvals will be obtained and
maintained.
- Mineral reserves were estimated using a gold price of
US$1,000/oz and mineral resources were estimated using a gold price
of US$1,200/oz at a $US/$CDN exchange rate of 1.10.
- Mineral reserves and resources were based on a cut-off grade of
0.50 g/t Au.
- LG fines (sourced from material grading 0.40 – 0.50 g/t Au)
classified as Measured or Indicated were reported as Probable
mineral reserves and included in the mine plan. Reported tonnage is
defined as material scheduled to be fed from 2021 to the end of the
mine as per 2018 life of mine plan.
- Further information, including key assumptions, parameters, and
methods used to estimate mineral resources and mineral reserves are
described in the Technical Report on the Detour Lake operation,
dated Nov 26th, 2018.
- Mineral underground resources for 58N are reported at a cut-off
grade of 2.2 g/t Au, using a gold price of US$1,300 per ounce and a
$US/$CDN exchange rate of 1.25 with an assumed mining dilution of
12%.
- Mineral resources are reported exclusive of mineral reserves.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resources are constrained
within an economic pit shell.
- Mineral Reserves and Mineral Resource estimates for the Detour
Operation was prepared under the supervision of A. Leite, PEng ,
AUSIMM CP (MIN), MEng, P. Eng.
- Totals may not add due to rounding.
Detailed footnotes related to Mineral
Resource Estimates for Canadian Assets (dated December 31, 2019) –
with the exception of Detour
- CIM definitions (2019) were followed in the calculation of
Mineral Resource.
- Mineral Resources are reported Exclusive of Mineral Reserves.
Mineral Resources were calculated according to KL Gold’s Mineral
Resource Estimation guidelines.
- Mineral Resource estimates were prepared under the supervision
of Eric Kallio, P. Geo. Senior Vice President, Exploration.
- Mineral Resources are estimated using a long-term gold price of
US $1,300/oz (C$1,700/oz).
- Mineral Resources were estimated using a range of 3.4g/t to 8.6
g/t cut-off grades for Macassa Mine, a 2.8 g/t cut-off grade for
Holt Mine and Holloway Mine, a 2.5 g/t cut-off grade for Holt Near
Surface, a 2.6 g/t cut-off grade for Taylor, a 2.5 g/t cut-off
grade for Canamax, a 2.2 g/t cut-off grade for Hislop and a 0 g/t
cut-off grade for Aquarius.
- Totals may not add up due to rounding.
Detailed footnotes related to Mineral Resource Estimates
for Australian Assets (dated December 31, 2019)
- CIM definitions (2019) were followed in the estimation of
Mineral Resource.
- Mineral Resources are estimated using a long-term gold price of
US$1,300/oz (A$1,765/oz)
- Mineral Resources for the Australian assets are reported
exclusive of Mineral Reserves.
- Mineral Resources at Fosterville were estimated using cut-off
grades 0.7 g/t Au for oxide and 1.0 g/t Au for sulfide
mineralization to potentially open-pitable depths of approximately
100m, below which a cut-off grade of 3.0 g/t Au was used.
- Mineral Resources in the Northern Territory were estimated
using a cut-off grade of 0.5 – 0.7 g/t Au for potentially open pit
mineralization and cut-offs of 1.5 to 2.0 g/t Au for underground
mineralization.
- Mineral Resource estimates for the Fosterville property were
prepared under the supervision of Troy Fuller, MAIG.
- Mineral Resource estimates for the Northern Territory
properties were prepared under the supervision of Owen Greenberger,
MAIG.
- Totals may not add up due to rounding.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 974,615
ounces in 2019, with target production for 2020 of
1,470,000 – 1,540,000 ounces. The production profile of
the Company is anchored by three high-quality operations, including
the Macassa Mine and Detour Lake Mine, both located in Northern
Ontario, and the Fosterville Mine located in the state of Victoria,
Australia. Kirkland Lake Gold's solid base of quality assets is
complemented by district scale exploration potential, supported by
a strong financial position with extensive management
expertise.
For further information on Kirkland Lake Gold and to receive
news releases by email, visit the website www.klgold.com.
Non-IFRS Measures
The Company has included certain non-IFRS
measures in this press release, as discussed below. The Company
believes that these measures, in addition to conventional measures
prepared in accordance with IFRS, provide investors an improved
ability to evaluate the underlying performance of the Company. The
non-IFRS measures are intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
These measures do not have any standardized meaning prescribed
under IFRS, and therefore may not be comparable to other issuers.
Refer to the MD&A for the three and twelve months ended
December 31, 2019, dated February 19, 2020, for the most recent
non-IFRS reconciliations.
Cautionary Note Regarding
Forward-Looking Information
This News Release includes certain
"forward-looking statements". All statements other than statements
of historical fact included in this release are forward-looking
statements that involve various risks and uncertainties. These
forward-looking statements include, but are not limited to,
statements with respect to planned exploration programs, costs and
expenditures, changes in Mineral Resources and conversion of
Mineral Resources to proven and probable reserves, and other
information that is based on forecasts of future operational or
financial results, estimates of amounts not yet determinable and
assumptions of management. These forward-looking statements
include, but are not limited to, statements with respect to future
exploration potential, project economics, timing and scope of
future exploration, anticipated costs and expenditures, changes in
Mineral Resources and conversion of Mineral Resources to proven and
probable reserves, and other information that is based on forecasts
of future operational or financial results, estimates of amounts
not yet determinable and assumptions of management.
Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans", "estimates" or "intends", or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties that could cause actual events or results
to differ from those reflected in the forward-looking statements.
Exploration results that include geophysics, sampling, and drill
results on wide spacings may not be indicative of the occurrence of
a mineral deposit. Such results do not provide assurance that
further work will establish sufficient grade, continuity,
metallurgical characteristics and economic potential to be classed
as a category of Mineral Resource. A Mineral Resource that is
classified as "Inferred" or "indicated" has a great amount of
uncertainty as to its existence and economic and legal feasibility.
It cannot be assumed that any or part of an "indicated Mineral
Resource" or "Inferred Mineral Resource" will ever be upgraded to a
higher category of resource. Investors are cautioned not to assume
that all or any part of mineral deposits in these categories will
ever be converted into proven and probable reserves.
There can be no assurance that forward-looking
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company’s expectations include, among
others, risks related to international operations, risks related to
obtaining the permits required to carry out planned exploration or
development work, the actual results of current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined as well as
future prices of gold, as well as those factors discussed in the
section entitled "Risk Factors" in the Company’s Annual Information
Form and other disclosures of "Risk Factors" by the Company and its
predecessors, available on SEDAR. Although Kirkland Lake Gold has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Cautionary Note to U.S. Investors - Mineral
Reserve and Resource Estimates
All resource and reserve estimates included in
this news release or documents referenced in this news release have
been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Standards"). NI 43-101 is a rule developed by the Canadian
Securities Administrators, which established standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. The terms "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
are Canadian mining terms as defined in accordance with NI 43-101
and the CIM Standards. These definitions differ materially from the
definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under
the United States Securities Act of 1933, as amended, and the
Exchange Act.
In addition, the terms "Mineral Resource",
"measured Mineral Resource", "indicated Mineral Resource" and
"Inferred Mineral Resource" are defined in and required to be
disclosed by NI 43-101 and the CIM Standards; however, these terms
are not defined terms under SEC Industry Guide 7 and are normally
not permitted to be used in reports and registration statements
filed with the U.S. Securities and Exchange Commission (the "SEC").
Investors are cautioned not to assume that all or any part of
mineral deposits in these categories will ever be converted into
reserves. "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred Mineral Resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in very limited circumstances.
Investors are cautioned not to assume that all or any part of a
Mineral Resource exists, will ever be converted into a Mineral
Reserve or is or will ever be economically or legally mineable or
recovered.
FOR FURTHER INFORMATION PLEASE
CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice-President, Investor Relations Phone: +1
416-840-7884 E-mail: mutting@klgold.com
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